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10-QPeriod: Q3 FY2007

AMAZON COM INC Quarterly Report for Q3 Ended Sep 30, 2007

Filed October 25, 2007For Securities:AMZN

Summary

Amazon.com, Inc. (AMZN) reported its third-quarter and nine-month results for the period ending September 30, 2007. The company demonstrated strong top-line growth, with consolidated net sales increasing by 41% year-over-year in the third quarter to $3.26 billion, and by 36% for the first nine months to $9.16 billion. This growth was driven by robust performance in both the North America and International segments, with significant contributions from increased unit sales and expansion in categories like electronics. Profitability saw a notable improvement compared to the prior year. Net income for the third quarter rose to $80 million, a substantial increase from $19 million in the same period last year. Diluted earnings per share were $0.19 for the quarter. The company's focus on long-term, sustainable growth in free cash flow per share remains a key strategic objective. Free cash flow for the trailing twelve months ended September 30, 2007, more than doubled to $800 million. Amazon continued to invest in technology and content, as well as in expanding its fulfillment capacity, signaling ongoing commitment to improving customer experience and operational efficiency.

Key Highlights

  • 1Consolidated net sales grew 41% to $3.26 billion in Q3 2007, and 36% to $9.16 billion for the nine months ended September 30, 2007.
  • 2Net income significantly increased to $80 million in Q3 2007, compared to $19 million in Q3 2006.
  • 3Diluted earnings per share were $0.19 for Q3 2007, up from $0.05 in Q3 2006.
  • 4Free cash flow for the trailing twelve months increased 118% to $800 million.
  • 5International segment net sales grew 40% in Q3 2007, representing 45% of consolidated net sales.
  • 6The company continued to invest heavily in technology and content, with capital expenditures of $151 million for the nine months ended September 30, 2007, primarily in website development and infrastructure.
  • 7Stock-based compensation expenses increased to $51 million in Q3 2007 from $30 million in Q3 2006, reflecting a higher value of stock awards granted.

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